Charles River Laboratories has acquired Oncotest GmbH, a Germany-based CRO providing target discovery and validation services for preclinical oncology research, for approximately $36 million in cash. The transaction also includes a potential additional payment of $2 million based on future performance. The company specializes in in vivo pharmacology services with a collection of more than 400 patient-derived xenograft (PDX) tumor models, as well as in vitro assays using both commercially available and PDX-derived cell lines.
 
The acquisition expands Charles River’s oncology portfolio of human xenografts, syngeneic, and humanized immunotherapy research models, flow cytometry, and IVIS imaging services. The enhanced capabilities will enable the company to support clients’ drug discovery programs, including: compound design and synthesis, hit-to-lead, high throughput screening (HTS), and lead-to-candidate services.
 
James C. Foster, chairman, president and chief executive officer of Charles River said, “Global biopharmaceutical clients are increasingly demanding a full suite of oncology capabilities from a single partner, including PDX tumor models, cell lines, imaging services, and immuno-oncology tools. With Oncotest GmbH, Charles River Discovery Services now has one of the most comprehensive and translational portfolios of oncology discovery services in the early-stage CRO industry.”

Oncotest is expected to represent approximately 1% of Charles River’s consolidated revenue and has become part of its In Vivo Discovery business, which is reported in the Discovery and Safety Assessment segment.